Construction Invoice: Sample, Template and How to Write One
A construction invoice is the bill a builder or contractor sends for work on a construction project. It names the job site and the project, lists labor, materials and equipment on separate lines, adds approved change orders, subtracts the deposit and earlier payments, and shows the amount due with the payment terms. Bigger projects are billed in stages against a schedule of values, often with retainage held back until the job is finished.
What a construction invoice includes
- Your business details: name, address, phone, email, and your contractor license number where your state requires it.
- Client and job site: the client’s name and billing address, and the job site address if it is different.
- Project details: the project name or number, the estimate, contract or purchase order it refers to, and the billing period for stage payments.
- Invoice number, date and due date.
- Labor: each task with hours and rate, or a fixed price per stage of work.
- Materials: what was used, with quantities and unit prices. Keep the supplier receipts.
- Equipment and other costs: rentals such as a dumpster or a lift, permits and disposal fees.
- Subcontracted work: the electrician, plumber or other trades you hired, if the contract lets you bill it.
- Change orders: extra work the client approved after the estimate, each on its own line with its number.
- Payments received: the deposit and earlier invoices, subtracted from the total.
- Retainage: on progress invoices, the share the client holds back.
- Amount due and payment terms: the balance, the due date and how the client can pay.
Sample construction invoice
A kitchen remodel billed when the first stage is finished, with the deposit already paid:
Northline Builders LLC
2140 Mill Road, Springfield
Contractor license no. 000000
INVOICE
| Item | Amount |
|---|---|
| Labor | |
| Demolition and haul-away16 h × $65.00 | $1,040.00 |
| Framing and drywall24 h × $65.00 | $1,560.00 |
| Electrical rough-in (licensed electrician)10 h × $95.00 | $950.00 |
| Labor subtotal | $3,550.00 |
| Materials | |
| Drywall sheets, 1/2 in, 4 x 8 ft22 × $16.50 | $363.00 |
| Framing lumber and fasteners | $486.75 |
| Electrical wire, boxes and breakers | $312.40 |
| Materials subtotal | $1,162.15 |
| Equipment | |
| Dumpster rental, 10 yd, 1 week | $425.00 |
| Equipment subtotal | $425.00 |
| Change orders | |
| CO-1: move the sink wall 3 ft (approved Oct 6) | $780.00 |
| Change orders subtotal | $780.00 |
- Total
- $5,917.15
- Deposit received Sep 29
- -$1,500.00
- Balance due
- $4,417.15
Payment due within 14 days. Pay by card from the invoice link or by bank transfer. A conditional lien waiver for this payment is attached.
Labor, materials, equipment and the change order are subtotaled separately, so the client can check each group against the estimate. The approved change order has its own number, and the deposit is subtracted, so the client sees exactly what is left to pay.
How to write a construction invoice in 5 steps
- Agree on the price and the billing schedule first. Put it in the estimate or contract: a fixed price, time and materials, or cost plus a fee; the deposit; and when you will bill, for example at each stage or every month.
- Set up the header. Your business details and license number, the client, the job site, the project name, the invoice number and date, and the estimate or purchase order number the client will look for.
- List the work. Labor as hours times your rate or as a fixed price for the stage; materials with quantities and prices; equipment rental; subcontracted work. Group the lines so the client can follow them.
- Add change orders and subtract payments. Bill each approved change order as its own line. Subtract the deposit and earlier payments, hold back retainage if the contract has it, and add sales tax only if your state requires it for this job.
- Send it with the terms and the paperwork. State the due date, for example 14 or 30 days, and how to pay. Attach what the client or lender asks for, such as a lien waiver or photos of the finished work. Send it the day the stage is done.
Progress billing and retainage
On larger jobs you bill in stages. The contract splits the price into a schedule of values, one line for each part of the work, and each invoice bills the share completed since the last one. Here is a progress invoice for a $120,000 contract with 10% retainage:
| Work | Scheduled value | Complete | Billed to date | Billed before | This invoice |
|---|---|---|---|---|---|
| Site work | $15,000 | 100% | $15,000 | $15,000 | $0 |
| Foundation | $25,000 | 100% | $25,000 | $20,000 | $5,000 |
| Framing | $35,000 | 60% | $21,000 | $7,000 | $14,000 |
| Roofing | $20,000 | 0% | $0 | $0 | $0 |
| Electrical and plumbing | $25,000 | 20% | $5,000 | $0 | $5,000 |
| Total | $120,000 | $66,000 | $42,000 | $24,000 |
The work billed this time comes to $24,000. The client holds back 10% retainage, $2,400, so the amount due is $21,600. The retained amounts are billed together when the project is finished and accepted.
Commercial projects often use the AIA G702 and G703 forms for this: G702 summarizes the contract, change orders, retainage and amount due, and G703 lists the schedule of values. Homeowners and small jobs usually get a simpler invoice like the sample above.
Construction invoice templates
- Excel and Word files: download free construction and home improvement invoice templates. The Excel file adds up the total for you.
- Online: the Invoxa invoice generator groups lines into sections such as Labor and Materials and sends the invoice as a link or PDF. In Invoxa you can send an estimate first, let the client approve and sign it online, convert it into an invoice, and request a deposit as a percentage or a fixed amount. Clients can pay by card from the invoice link when you connect Stripe.
If you work alone and bill by the hour or by the project, see our guide to contractor invoices.
Get paid on time
- Take a deposit before you order materials, and bill each stage as soon as it is done.
- Keep the terms short and clear, such as 14 days, with the due date on the invoice.
- Get every change in writing before you do the work, so it is not disputed when it shows up on the invoice.
- Make paying easy: card payments from the invoice link, bank transfer details, and the invoice number in your email subject.
- Know your lien rights. Most states set deadlines for preliminary notices and liens; check yours at the start of the job, not when a payment is late.
Frequently asked questions
What should a construction invoice include?
Your business name, contact details and license number; the client and the job site address; the project name, invoice number, dates and due date; labor, materials, equipment and subcontracted work on separate lines; approved change orders; deposits and earlier payments; retainage on progress invoices; the amount due and how to pay.
What is retainage on a construction invoice?
Retainage (or retention) is a share of each progress payment, often 5% to 10%, that the client holds back until the project is finished. The invoice shows the amount earned, the retainage withheld and the net amount due, and the retained total is billed at the end of the job. Many US states limit retainage, especially on public projects.
What are AIA G702 and G703 forms?
They are standard progress payment forms from the American Institute of Architects, used on many commercial projects. G702 is the application and certificate for payment: contract sum, change orders, work completed to date, retainage and the amount due. G703 is the continuation sheet that lists the schedule of values line by line. Small residential jobs rarely need them.
How do I bill a change order?
Get the change approved in writing before you do the work, with its price. Then bill it as its own line with the change order number and a short description, and update the contract total on later invoices.
What is a lien waiver?
A document in which a contractor or supplier gives up its right to file a lien for the amount it has been paid. A conditional waiver takes effect only when the payment clears; an unconditional waiver applies as soon as it is signed. Owners and lenders often ask for one with each payment, and some states require their own forms.
Do you charge sales tax on a construction invoice?
It depends on the state and on the kind of job. In many states a contractor pays sales tax on materials when buying them and does not add tax to the invoice for building work, while repairs or installations may be taxable. Check the rules of your state's department of revenue.
